Apple launches small-screen iPhone SE, cheaper Apple Watch and smaller iPad Pro

In its latest product launch event, Apple slightly underwhelmed with the launch of a smaller-screen new 'iPhone SE', a cheaper price for the Apple Watch wearable device and a new smaller 'iPad Pro' tablet.

In response to huge worldwide demand for smaller phones that saw over 30m 4-inch iPhones sold in 2015, chief executive Tim Cooke unveiled the 4-inch iPhone SE, costing $399, which is the lowest ever price for a new iPhone.

Lauded as "most powerful 4-inch phone ever", the rose gold iPhone SE is powered by a 64-bit A9 processor, which is based around v8-A architecture from ARM Holdings and M9 motion co-processor, also based on ARM architecture.

The new phone is faster than the iPhone 5s, and has hands-free Siri control and comes with 12 megapixel iSight camera in a frame with rounded edges.

Orders will begin on Thursday 24 March and the phone will be available next week, with Apple aiming to be in 110 countries by the end of May.

Cook also unveiled a smaller iPad Pro, sized at 9.1 inches, weighing less than 1 pound and starting at $599 for the 32GB version.

Apple's first iPad Pro was launched last year with a 12.9-inch screen.

Phil Schiller, senior vice president of worldwide marketing, said the iPad Pro was the ultimate PC replacement, with features including better display, less reflective screen and faster processor.

The Apple Event's product section began with a cutting of Apple Watch to $299.

Having been on the up before the event began, Apple stock fell into moderately negative territory for the day at $105.88.

Apple stock is down 1.7% over the last three months and more than 16% since the company was added to the Dow Jones Industrial Average a year ago, while the index has only slid 2%.